Q: Looking for your latest view on this stock looking at replacing it with WELL but GUD did very good on its last earning report but market doesn't appear to be to impressed,wondering if you would hold until their next earning report or just move on.
5i Research Answer:
GUD has seen a nice bounce recently from its earnings results, but largely, it remains an expensive company (59X forward earnings), and has seen negative momentum over the past several years. It generates a small amount of free cash flow and has a nice cash balance of $160M, but we prefer the larger size and cheaper valuation of WELL. WELL has seen better momentum than GUD, and we like the management team better. We would be comfortable moving on from GUD.